]]>Each week we highlight entrepreneurs in the cannabis industry for our viewers to learn more about the leading cannabis executives of our time. This week, we highlight Larisa Bolivar of Bolivar Hemp Company.

Meet Larisa Bolivar

Larisa E. Bolivar, M.A., has over 17 years of cannabis-related experience and is a recognized trailblazer and pioneer in the cannabis industry. Noted by the Washington Post as “one of the city’s [Denver] most well-known proponents of decriminalizing marijuana nationally,” Ms. Bolivar has a long history in the cannabis space as an activist, advocate, policy-worker, and entrepreneur. A serial entrepreneur, she is Founder and CEO of Bolivar Hemp Company, a hemp-based topical and skincare line; Co-founder and Managing partner of TCMS Global, a cannabis-related business development and management consulting firm; Executive Director of the Cannabis Consumers Coalition, a Cannabis consumer watchdog organization known for pushing for standards and laws regarding issues such as pesticides use and consumer safety. She also serves on the Board of Directors of Colorado NORML, and is Vice Chair of the National Diversity and Inclusion Alliance (NDICA), a Los Angeles based nonprofit that works with groups most impacted by the war on drugs to create ownership and empower workers to develop a more inclusive and diverse cannabis industry.

Ms. Bolivar, began her career by assisting patients in navigating the early and complicated process of finding doctors who would recommend cannabis and matchmaking them with registered caregivers in an effort to create safe access in a legally ambiguous space. This resulted in her shepherding and helping to register the first few thousand patients in Colorado through her organization Caregivers for Safe Access, which was renamed the Colorado Compassion Club and in 2005 evolved into one of the first dispensaries in Colorado, long before regulations were created in 2010. Through her advocacy and activism, she was able to find and promote one of the first doctors to publicly help review and sign recommendations for patients in a climate that was still under threat of DEA intervention and the threat of license revocation. Through the years, she has accumulated substantial Cannabis related experience in the area of advocacy, policy, market and behavioral analysis, public relations, communications, strategy, and business development. Ms. Bolivar was recognized as a cannabis industry pioneer by Sensi Magazine in 2015 for her hard work and constant dedication to advancing the social and business interests of the cannabis movement.

For the last several years, Ms. Bolivar has devoted her cannabis advocacy work towards creating a more diverse and inclusive cannabis industry. Her master’s thesis was “Enduring disparity after cannabis legalization,” which she wrote because she saw a grow underrepresentation of people of color in leadership roles and as licensed cannabis business owners. She comes from a very diverse family, including Peruvian, Chippewa Indian and African American, and has seen firsthand what the war on drugs has done to communities of color, including the disparity of drug arrests, and was inspired to work towards creating social equity in the new cannabis industry. Ms. Bolivar was part of the founding team of NDICA, and through that vehicle and the Cannabis Consumers Coalition, she has helped on policy impacting people of color in California and spoken globally on the need to create a more diverse cannabis industry for business and consumers. She is also currently on a workgroup in Colorado with a team of policy experts working with the Department of Revenue to explore policy initiatives to create more diversity in cannabis business ownership in Colorado.

In our interview with Larisa, we asked a variety of questions to learn more about Bolivar Hemp Company, and what it takes to build a startup in the cannabis industry!

DCN: Larisa, congratulations on being featured as this week’s entrepreneur of the week and for all that you do! Can you please share with our readers your elevator pitch for Bolivar Hemp Company?

Larisa Bolivar: Bolivar Hemp Company is a hemp-based topical and skincare line dedicated to providing the highest quality and effective ingredients geared towards health and beauty. We are founded by and operated by a woman and cannabis pioneer, and our products are made from hemp cultivated and manufactured by military veterans.

DCN: What ignited the spark in you to launch your business?

Larisa Bolivar: I have always wanted to have a cannabis product line. I did not have the resources or connections to raise capital to start a marijuana-infused cannabis line when I first moved back to Colorado in 2013 after A-64 passed. Ironically, in a state where I am a recognized pioneer of the cannabis industry from my early years carving a pathway for patients to have safe access to cannabis, including erecting a store-front dispensary in 2005, long before regulations, I did not meet the residency requirements either to start a cannabis business.

In the meantime, I worked on the ancillary side of the market building my consulting business. Hemp provided an opportunity for me to launch a product line without having to pay tens of thousands of dollars in licensing fees. A friend of mine, who is a veteran and hemp farmer and manufacturer, as well as a marketing consultant, called me up and said he wanted to help me launch a line with my name on it. Bolivar Hemp Company was thus born!

DCN: When you finally decided that you wanted to launch a business in the cannabis industry, what was your experience like when telling your family and friends? Were they supportive?

Larisa Bolivar: In the beginning, not so much. My mother worked in law enforcement on the administrative side for Vice Narcotics and my dad is an immigrant from Peru from a conservative Catholic family. Keep in mind that when I got involved in cannabis in 2001, Colorado had just legalized medical marijuana and people were still going to jail for having six plants, regardless of their medical condition or caregiver status. It was not a very popular time to be in cannabis as it was uncertain and very dangerous. Through the years, as cannabis became more mainstream, my family has become more supportive. In fact, my mom likes to joke about how I made a career out of the one thing that I always got in trouble for while in high school.

DCN: What is unique about your business?

Larisa Bolivar: Bolivar Hemp Company is unique in multiple ways. We are a minority woman-owned business founded by a recognized cannabis pioneer. The hemp is grown on a farm owned by a veteran and processed by a veteran. Our products, which are made from plant-based, natural and organic ingredients, are blended with plant extracts and essential oils that are scientifically formulated to target specific results.

DCN: What are some challenges you faced early on and how’d you beat them?

Larisa Bolivar: My biggest challenge was overcoming myself and my busy schedule. I am a caregiver for a 100% disabled veteran and am a managing partner for a consulting firm, both with immense responsibilities. On top of that, I have a nonprofit that works on policy to protect cannabis consumers, which also takes a lot of time. However, my desire to have a hemp line superseded all of my fears and doubts. I work late nights and have enlisted friends for help.

The other challenge is cost. I have always bootstrapped my businesses, and to bootstrap, another one seemed super daunting. I come from a working-class predominately minority family who is very risk-averse, especially when it comes to cannabis. Loans are hard to come by and finding the right investor is not easy, so in the meantime, I had to rely on myself, business partners and a couple of friends along the way. Enrolling people into my vision and helping them along the way helped me grow as well.

DCN: How did you come up with the name of your company?

Larisa Bolivar: The same friend who wanted to help me launch a hemp line really stressed using my own last name somehow for the name of the line. The name Bolivar is associated with revolution. Simon Bolivar was a revolutionary from Caracas, Venezuela liberated most of Latin America from Spain. My dad’s family is from Peru and my dad moved here seeking asylum in 1969 following a regime change in 1968. Hemp and cannabis liberation overall is indeed a revolution.

I really resonate with the whole revolutionary theme, in general, has been an activist and support progressive policies in general. A revolution does not have to be violent, it can also be a sudden change, which is exactly what cannabis legalization represents. The change took decades of pushing forward, with a surge in the late 60s. Many of my cannabis mentors and life mentors were those who were involved in the counter-culture revolution.

DCN: What did you give up to get where you are today?

Larisa Bolivar: This answer hits my heart hard, but I sacrificed having a family to get where I am today. I began my journey in cannabis in Colorado almost 20 years ago when I moved here as a medical marijuana refugee. Despite Amendment 20 passing and giving Coloradans the constitutional right to consume cannabis for medicinal purposes, patients and caregivers were still getting raided and going to jail for legally and constitutionally protected 6 plants.

Local gangs and black market operators were also attacking and robbing medical marijuana caregivers and patients for providing cannabis at a fraction of a cost to sick people, with little help from law enforcement because there was no regulatory guidance from state officials, resulting in law enforcement defaulting to federal law and treating all cannabis consumers like criminals equally. It was simply too dangerous. In 2008 I left an abusive marriage to start my life over again, including going to college to carve a path in cannabis professionally.

Now, at 42, I look back and realize that I never started a family or remarried, or even found my soul mate. This is not sound sad, it’s just a that it’s a true sacrifice and has been on my mind a lot lately as I get older. I consider my businesses brainchildren, and that helps me keep a positive outlook on the choices and sacrifices I made to get here.

DCN: What is the best piece of advice you can give to others looking to launch a company in the cannabis industry?

Larisa Bolivar: To keep your eye on the prize, whether that be funding, being bought out, knowing when to scale, and knowing when to pivot. Launching a business takes a lot of flexibility and knowing when and how to grow. Time and tides change, and they do so very quickly in the cannabis space. Be prepared to grow with it all.

DCN: What’s the hardest part of founding and running a startup?

Larisa Bolivar: Making time for yourself to do good self-care. It is easy to fall into bad habits when stressed. Sixteen hour days aren’t unusual and I find that outside of the obvious challenges to running a business, like fundraising, business planning, meeting customer needs, it is super critical to carve time for yourself. You have to be on your game all the time and being in optimal health is critical.

DCN: Is there anything that surprised you about being an entrepreneur in the cannabis industry?

Larisa Bolivar: I think I am surprised most by how many hours it takes to build a competitive business. It’s not for the faint of heart. It’s called a green rush for a reason. Many of us refer to cannabis years like dog years. I have worked in other startups that had successful launches and exits, which is rare in of itself, and I know that it takes a lot of work.

However, in those environments, I was a staff member and not CEO or a managing partner. I also have three businesses. My other two are a consulting firm and a nonprofit consumer watchdog and advocacy organization. These are all to fill the needs and demands on my time. I have a policy degree and work on cannabis policy and have been consulting since 2008, first on the communications side, and then on the business development side. All of these grew organically to meet the demands that were asked of me. Back on those days, there were very few people with cannabis experience in the professional and policy worlds. Now, I have to work as many hours to remain competitive as new players enter the space.

DCN: How do you stay balanced?

Larisa Bolivar: I am an avid gardener in the spring/summer and I love to work out for stress relief. I find gardening to be very grounding and the results of my work to be very satisfying. Exercise is critical for managing stress. Even if it’s a half hour on the elliptical, it makes a difference in your mindset. I also live in Colorado, which helps. I often take what I call the “long way home” and drive through the mountains exploring and just clearing my head. It helps tremendously!

DCN: What book has inspired you the most?

Larisa Bolivar: The Emperor Wears No Clothes by Jack Herer. I read it in 2002 after a suggestion from one of my mentors and it was what made me make my final decision to dive headfirst into the burgeoning cannabis movement in Colorado. At the time I was on the fence about getting fully involved, and it took down so many veils about how policy is made in this country to benefit a few and how cannabis can truly save the planet. There was just no turning back.

DCN: Excluding yours, what company or business do you admire the most?

Larisa Bolivar: United Cannabis Company. It was started by someone who was a caregiver and grower just like me and evolved into a multi-million dollar publicly traded company that has been leading the charge on cannabis product development ever since and social responsibility. UCann has been providing medical marijuana to patients for free for many years and they strive to keep the integrity of the cannabis industry.

DCN: How can we as an industry continue to make a positive difference in society?

Larisa Bolivar: I think we are at a challenging time in our history and people are questioning the value of capitalism and how it benefits society. It is viewed as a winner takes all mentality at all costs, and values, morals, and integrity come into question. I think that we have a unique opportunity to show that we can support each other’s growth. Cannabis is a conscious plant used in sacred medicine for personal growth and enlightenment. It will be interesting to see how that manifests in society as it’s use becomes more mainstream, but idealistically I would like to see more social responsibility to ourselves and our environment.

DCN: Thank you, Larisa, for sharing your story and offering such real and insightful advice to DCN readers! Before we let you go, do you have any final words for our readers?

Larisa Bolivar: I really want to express how grateful I am that cannabis has put me in contact with the most amazing people. There is so much talent and genius out there and it’s fun to watch the industry develop, for good or bad, it’s something that I never thought would happen so quickly. What a ride!

For those looking to learn more about Bolivar Hemp Company please check out, www.bolivarhemp.com and on Instagram at @bolivarhemp

Want to be featured? Click here to tell us why you should be an Entrepreneur of the week on DCN.

]]>https://www.directcannabisnetwork.com/entrepreneur-week-larisa-bolivar/feed/0Emerald Cup Spotlight: The Humboldt Curehttps://www.directcannabisnetwork.com/emerald-cup-spotlight-humboldt-cure/
https://www.directcannabisnetwork.com/emerald-cup-spotlight-humboldt-cure/#respondThu, 17 Jan 2019 21:27:05 +0000http://www.directcannabisnetwork.com/?p=18412For 15 years the Emerald Cup has been showcasing Northern California’s premier cannabis destination while advancing the concept of sustainable, outdoor farming. Its reputation is firmly solidified as the largest, most respected, organic, outdoor, cannabis competition in the world. In this editorial series, DCN had the opportunity to speak with each of the first place winners […]

]]>For 15 years the Emerald Cup has been showcasing Northern California’s premier cannabis destination while advancing the concept of sustainable, outdoor farming. Its reputation is firmly solidified as the largest, most respected, organic, outdoor, cannabis competition in the world.

In this editorial series, DCN had the opportunity to speak with each of the first place winners to showcase who they are, their mission and what it takes to compete in one of the industries most respected cannabis events.

Meet The Humboldt Cure

The Humboldt Cure started as a family grow tradition, spanning over four decades in the world’s most renown region of craft sun-grown cannabis. With this on-going family tradition, they have mastered the craft of cultivation and harvesting which is no surprise they have become well-known for their award-winning cannabis flowers such as Zombie Fields and the Punch Berry strains. They have received awards over the past few years in some of California’s most notable cannabis competitions and events such as The Emerald Cup, the Blazer’s Cup, The High Times Cannabis Cup, Kushstock, Dabathon, Happy Place (Chalice), and Local Sesh.

In many cases, their award-winning flowers are also then processed into award-winning cannabis concentrates.

At The Humboldt Cure, they only use sustainable methods in the cultivation of their flowers. All of their flowers are sustainable farm-grown outdoor cannabis using mixed lighting techniques amongst other methods that are proprietary to their family farming traditions.

In addition to being at the forefront of cultivation, their vast and in-depth experience of processing craft cannabis strains is exemplary through the quality of their beyond sustainable flowers. As always, all of The Humboldt Cure’s cannabis flowers are lab tested and fulfill all of the strict guidelines and regulations that fall under Prop 64.

And now they have evolved into a full-scale licensed operation.

The Interview

DCN: Humboldt Cure placed 1st in the Concentrate Diamonds Award! How does it feel?

The Humboldt Cure: Its an honor to win such an award from one of the most prestigious Cannabis events in the world.

DCN: The Humboldt Cure was in collaboration with Joe Fasho Genetics, Murder Mountain and the Humboldt Cure Blend Diamonds, I would love to learn more about how this collaboration ensued and how each came together to develop this concentrate?

The Humboldt Cure: Joe Fasho is the CEO and founder of both THE HUMBOLDT CURE and MURDA MNTN.

DCN: How long has the Humboldt Cure been around?

The Humboldt Cure: The Humboldt Cure was founded on 02-05-15 and began marketing last quarter of 2016.

DCN: What does the Humboldt Cure have in store for 2019?

The Humboldt Cure: Opening a distribution facility in order to purchase local farms harvest to be sold under The Humboldt Cure.

DCN: Over the past few years, your company like many others in the cannabis industry have faced many changes, what has it been like building a compliant company?

The Humboldt Cure: Its as if you stare death in the eyes every morning when you wake up. This sort of realization keeps us pushing our hardest not to fail.

DCN: DCN is a business to business digital news network, giving a voice to cannabis startups, and sharing the stories of entrepreneurs in this industry, we may be a business focused media outlet, but one thing we strive is to make sure that as the cannabis community evolves into an industry. We don’t want to lose the WHY we are all here, and that is because of this plant, what is one important message you would like to share with our readers?

The Humbolt Cure: Remember it’s up to the end user which companies will be around in the future. Vote with your dollars for the mom and pops who founded industry when you choose which products you buy!

DCN: Thank you for taking the time to share more about the Humboldt Cure. Congratulations again!

]]>https://www.directcannabisnetwork.com/emerald-cup-spotlight-humboldt-cure/feed/0The Legal Joint: Collective And Cooperative Defensehttps://www.directcannabisnetwork.com/legal-joint-collective-cooperative/
https://www.directcannabisnetwork.com/legal-joint-collective-cooperative/#respondTue, 15 Jan 2019 23:52:19 +0000http://www.directcannabisnetwork.com/?p=18408You’ve probably heard that California’s medical cannabis collective and cooperative defense will end soon, on January 9, 2019. But what does that actually mean? First, some history. In 1996, the voters of California passed a seminal initiative, Proposition 215, also known as the Compassionate Use Act. Proposition 215 gave medical cannabis patients and their designated […]

]]>You’ve probably heard that California’s medical cannabis collective and cooperative defense will end soon, on January 9, 2019. But what does that actually mean?

First, some history. In 1996, the voters of California passed a seminal initiative, Proposition 215, also known as the Compassionate Use Act. Proposition 215 gave medical cannabis patients and their designated primary caregivers limited immunity from prosecution for the possession and cultivation of cannabis. Back in those days, cultivation of a single cannabis plant, or the possession with the intent to sell any usable amount (even a smidgen), was a felony under California law, punishable by a sentence in the state prison.

In 2004, the California Legislature enacted the Medical Marijuana Program Act, also known as Senate Bill 420, which set up a system for state-issued medical identification cards which remains with us to this day. Senate Bill 420 also expanded protections for patients and designated primary caregivers “who associate within the State of California in order collectively or cooperatively to cultivate marijuana for medical purposes.” Here is the key provision in Senate Bill 420 which gave birth to collectives and cooperatives:

Health & Safety Code § 11362.775. Qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate within the State of California in order collectively or cooperatively to cultivate cannabis for medicinal purposes, shall not solely on the basis of that fact be subject to state criminal sanctions under Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570.

Because § 11362.775 is a creature of the Legislature (as opposed to a voter initiative), it can be rewritten by the Legislature without violating the principle enunciated by the California Supreme Court in People v. Kelly (2010) 47 Cal.4th 1008, that only the voters, not the Legislature, have the power under the California Constitution to amend Proposition 215. In other words, any amendment to § 11362.775 would amend Senate Bill 420, not Proposition 215.

There were two “loopholes” to Health and Safety Code Section 11362.775. (For ease of reference, the term collective is used hereafter, and denotes both collectives and cooperatives.) First, there was no limitation on how many patients or caregivers could join a collective, which eventually led to numerous collectives with thousands of members. Second, there was no limitation on how many collectives a patient or caregiver could join, which led to the same result. Over the years, this morphed into the “collective / co-op model” where practically anyone with a medical cannabis recommendation could sign up to be a member of a medical cannabis collective and would then provide medical cannabis in exchange for “reimbursement” for expenses, ostensibly on a not-for-profit basis.

Under this model, with no regulation whatsoever from state authorities, and minimal, if any, regulation at the local level, the medical cannabis industry in California grew, multiplied and thrived. Before the current era of regulated “commercial cannabis activity” which officially commenced on January 1, 2018, the cannabis industry in California was a vibrant example of laissez-faire capitalism.

Health and Safety Code § 11362.775 was subsequently amended in 2015 when the Legislature passed the Medical Marijuana Regulation and Safety Act, with the unfortunate acronym MMRSA, which sounds like the deadly superbug Methicillin-resistant Staphylococcus aureus. MMRSA introduced a convoluted regulatory framework for medical cannabis which did not allow cultivators direct access to consumers; all transactions were to be mediated by licensed distributors. In order to force medical cannabis operators into the regulated system, an expiration date was put on collectives and cooperatives (with a floating date of one year after the state started issuing state medical cannabis licenses), and thus a sunset clause was grafted onto § 11362.775.

According to the Los Angeles Times, retired alcohol distribution executive Ted Simpkins “happened to own a distribution company that was lobbying heavily in Sacramento to craft the law the way he wanted.” Indeed, Politico Magazine reported in August 2016 in an article with the attention-grabbing headline How Big Alcohol is About to Get Rich Off California Weed, that, “During the 2015-16 state legislative session, Simpkins’ company [River Distribution], paid out $134,500 for lobbying of medical marijuana distribution.”

MMRSA was quickly rebranded MCRSA, the Medical Cannabis Regulation and Safety Act. After Proposition 64, known as the Adult Use of Marijuana Act (AUMA) passed resoundingly in late 2016 and established a similar, but different regulatory framework, regulators realized that they did not want to come up with two confusing sets of convoluted regulations, one for medical cannabis and one for adult-use cannabis. The Legislature ended up repealing the medical framework and combining the two different regulatory frameworks into one unitary regulatory framework branded the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) which is currently in effect. Despite all of these changes, the sunset clause on collectives and cooperatives remained.

(a) Subject to subdivision (d), qualified patients, persons with valid identification cards, and the designated primary caregivers of qualified patients and persons with identification cards, who associate within the State of California in order collectively or cooperatively to cultivate cannabis for medicinal purposes, shall not solely on the basis of that fact be subject to state criminal sanctions under Section 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570.

(b) A collective or cooperative that operates pursuant to this section and manufactures medicinal cannabis products shall not, solely on the basis of that fact, be subject to state criminal sanctions under Section 11379.6 if the collective or cooperative abides by all of the following requirements: […]

(c) For purposes of this section, “manufacturing” means compounding, converting, producing, deriving, processing, or preparing, either directly or indirectly by chemical extraction or independently by means of chemical synthesis, medicinal cannabis products.

(d) This section shall remain in effect only until one year after the Bureau of Cannabis Control posts a notice on its Internet Web site that the licensing authorities have commenced issuing licenses pursuant to the Medicinal and Adult-Use Cannabis Regulation and Safety Act (Division 10 (commencing with Section 26000) of the Business and Professions Code).

(e) This section is repealed one year after the date upon which the notice is posted pursuant to subdivision (d).

(Amended by Stats. 2017, Ch. 27, Sec. 140. (SB 94) Effective June 27, 2017. Repealed as of January 9, 2019, pursuant to its own provisions.)

MAUCRSA amended Health and Safety Code section 11362.775, the provision in SB 420 affording legal protection to cannabis collectives and cooperatives. This protection will end one year after the Bureau of Cannabis Control (Bureau) posts a notice on its website that the state commercial cannabis licensing authorities have commenced issuing licenses. Once the one-year period tolls, all cannabis collectives, and cooperatives that continue to engage in commercial business will need to be licensed, except for: (a) individual patients; and (b) caregiver gardens serving no more than five patients.

The Bureau posted the notice on its website on January 9, 2018. Thus, the protection against criminal sanctions for cannabis collectives and cooperatives ends January 9, 2019. At that time, cannabis collectives and cooperatives that seek to continue their operations will need to obtain a state license and comply with any local requirements.

January 9, 2019, is almost upon us, and soon, there will no longer be any medical collective or cooperative “defense” (technically a limited immunity from prosecution) to assert in criminal court in response to alleged violations of Health & Safety Code Sections 11357, 11358, 11359, 11360, 11366, 11366.5, or 11570. (Given enforcement trends, there are not many occasions to assert the defense in the criminal courts. After the passage of Proposition 64, there has been a drastic decrease in the number of felony marijuana arrests in California, from 13,300 felony arrests per year in 2014 to 2,086 in 2017, according to an analysis of the California Attorney General’s annual crime report for 2017 by California NORML.)

In theory, this leaves unlicensed cannabis businesses at risk of being raided and shut down by law enforcement, who could file criminal charges, including felony charges such as 11366.5 (Maintaining a Place) or conspiracy. Surprisingly, conspiracy to commit a misdemeanor can be prosecuted as a felony according to the California Court of Appeal decision in People v. Tatman (1993) 20 Cal.App.4th 1, a fascinating opinion stemming from an abalone poaching case in Mendocino County. (According to Tatman, this is justified on the theory that collaborative criminal activities pose a greater potential threat to the public than individual acts. “The division of labor inherent in group association is seen to encourage the selection of more elaborate and ambitious goals and to increase the likelihood that the scheme will be successful.”)

Moreover, in addition to criminal charges, civil penalties could also be imposed. Section 26038 of the Business and Professions Code, which was originally in the Adult Use of Marijuana Act (AUMA) / Proposition 64 and was amended by MAUCRSA, states (with emphasis added):

(a) A person engaging in commercial cannabis activity without a license required by this division shall be subject to civil penalties of up to three times the amount of the license fee for each violation, and the court may order the destruction of cannabis associated with that violation in accordance with Section 11479 of the Health and Safety Code. Each day of operation shall constitute a separate violation of this section. All civil penalties imposed and collected pursuant to this section by a licensing authority shall be deposited into the General Fund except as provided in subdivision (b). A violator shall be responsible for the cost of the destruction of cannabis associated with his or her violation.

(b) If an action for civil penalties is brought against a person pursuant to this division by the Attorney General on behalf of the people, the penalty collected shall be deposited into the General Fund. If the action is brought by a district attorney or county counsel, the penalty shall first be used to reimburse the district attorney or county counsel for the costs of bringing the action for civil penalties, with the remainder, if any, to be deposited into the General Fund. If the action is brought by a city attorney or city prosecutor, the penalty collected shall first be used to reimburse the city attorney or city prosecutor for the costs of bringing the action for civil penalties, with the remainder, if any, to be deposited into the General Fund.

Under MAUCRSA, being sanctioned by a cannabis licensing agency and receiving a criminal conviction could both result in not being able to obtain a cannabis license in the future. Business and Professions Code Section 26057 states, in relevant part (with emphasis added):

(b) The licensing authority may deny the application for licensure or renewal of a state license if any of the following conditions apply:

…

(2) Conduct that constitutes grounds for denial of licensure under Chapter 2 (commencing with Section 480) of Division 1.5, except as otherwise specified in this section and Section 26059.

…

(4) The applicant, owner, or licensee has been convicted of an offense that is substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, except that if the licensing authority determines that the applicant, owner, or licensee is otherwise suitable to be issued a license, and granting the license would not compromise public safety, the licensing authority shall conduct a thorough review of the nature of the crime, conviction, circumstances, and evidence of rehabilitation of the applicant or owner, and shall evaluate the suitability of the applicant, owner, or licensee to be issued a license based on the evidence found through the review. In determining which offenses are substantially related to the qualifications, functions, or duties of the business or profession for which the application is made, the licensing authority shall include, but not be limited to, the following:

(A) A violent felony conviction, as specified in subdivision (c) of Section 667.5 of the Penal Code.

(B) A serious felony conviction, as specified in subdivision (c) of Section 1192.7 of the Penal Code.

(C) A felony conviction involving fraud, deceit, or embezzlement.

(D) A felony conviction for hiring, employing, or using a minor in transporting, carrying, selling, giving away, preparing for sale, or peddling, any controlled substance to a minor; or selling, offering to sell, furnishing, offering to furnish, administering, or giving any controlled substance to a minor.

(E) A felony conviction for drug trafficking with enhancements pursuant to Section 11370.4 or 11379.8 of the Health and Safety Code.

…

(7) The applicant, or any of its officers, directors, or owners, has been sanctioned by a licensing authority or a city, county, or city and county for unauthorized commercial cannabis activities, has had a license suspended or revoked under this division in the three years immediately preceding the date the application is filed with the licensing authority.

While moving towards a state-licensed commercial market is a positive achievement overall considering the drastic decrease in life-altering felony arrests and prosecutions, the unfortunate reality for many longtime California cannabis operators is that permits are not available in most parts of the state. Even in those cities or counties where local permits are available, suitable locations are limited, and competition is fierce.

Inevitably, many legacy businesses who were able to thrive in an unregulated market with minimal barriers to entry won’t be able to make it through the licensing process simply due to location, economic constraints, and lack of access to capital. Yet, those who want to do things legally and who don’t want to hurt their chances of obtaining a license in the future, including cannabis businesses that previously operated as collectives and cooperatives, must obtain the requisite local permits and necessary state licenses.

Does this mean that a crackdown on unlicensed operators could be on its way? Probably not, at least not according to Alex Traverso, spokesperson for the Bureau of Cannabis Control, who stated to Marijuana Business Daily that his agency “will continue to use a carrot-over stick approach and try to coax illegally operating collectives/co-ops into getting state licenses, instead of coming down hard on those without permits.” (Local jurisdictions also have enforcement authority and could, in theory, choose a far more aggressive enforcement posture than that reportedly telegraphed by the Bureau of Cannabis Control.)

How will the world end for most collectives and cooperatives? Not with a bang but a whimper. This was foreseen by immortal activist Mickey Martin, who predicted back in 2015 when the sunset clause was first unveiled that “the cannabis industry as you know it” would die a slow death.

As the midnight hour approaches and medical cannabis collectives and cooperatives are about to turn from golden carriages into pumpkin coaches, it is worth recalling the many exhilarating, perilous, and unpredictable journeys traveled all across the Golden State by patients and caregivers aboard these soon-to-be-legendary transports.

The above information is provided as a public service. It is not intended as legal advice. Written by Omar Figueroa and Lauren Mendelsohn of Law Offices of Omar Figueroa.

For answers to your legal questions or legal assistance, including with establishing and implementing a trade secrets protection plan, please contact the Law Offices of Omar Figueroa at (707) 829-0215 to schedule a confidential legal consultation.

]]>https://www.directcannabisnetwork.com/legal-joint-collective-cooperative/feed/0Advice From The Booth Mom | Promotion 101https://www.directcannabisnetwork.com/advice-booth-mom-promotion-101/
https://www.directcannabisnetwork.com/advice-booth-mom-promotion-101/#respondTue, 15 Jan 2019 23:22:15 +0000http://www.directcannabisnetwork.com/?p=18404Welcome to Advice from the Booth Mom editorial series, each article you will gain insight on how to set up your company trade show schedule, planning logistics and marketing efforts strategically at industry events. This week from the Booth Mom, she shares her insight on promotion- pre-show, on-site and post-show promotion. If you consider your exhibit your […]

]]>Welcome to Advice from the Booth Mom editorial series, each article you will gain insight on how to set up your company trade show schedule, planning logistics and marketing efforts strategically at industry events. This week from the Booth Mom, she shares her insight on promotion- pre-show, on-site and post-show promotion.

If you consider your exhibit your stage, and your staff as the actors, what props will you use to entice your audience to take note of your message? A promotional strategy plan that addresses your goals and objectives, target audience, promotional budget, and timeframes can make the difference between a colossal prop and a chaotic flop.

Before planning your promotional strategy, take an introspective look at your company and product line. Ask yourself:

What do I have that’s new? “New” is the most powerful word at a trade show. Attendees want to see the newest products available on the show floor, so if you are doing a product introduction, use it to your advantage as part of your promotion.

What type of promotion will reinforce my current advertising theme or integrated marketing plan? Plan your exhibit theme around it.

What differentiates me from my competitors?

Determine your “unique selling position”. How can you make attendees remember you by your uniqueness?

How do I want to be remembered by the show attendees? Will the promotions I’m planning to leave the lasting impression I want?

The key to success in promotion is developing an integrated trade show program spanning pre-show, on-site, and post-show promotion. The goal is making multiple impressions on your target audience to increase your memorability – that little piece of attendee mindshare all exhibitors want.

Pre-Show Promotion

So, how do you get your “perfect prospect” to put your exhibit on their “must see” list? First, you must determine the demographics of your perfect prospects, and what types of promotion might appeal to them.

Types of Pre-show Promotion

There are many types of pre-show promotion and considerations regarding when and where to use them:

Public Relations (PR)/Media Relations
Get the list of participating press from Show Management and invite members of the press to your exhibit booth or press conference.
Present a professional looking, well-formatted press release in a press kit.
Don’t hype “non-announcements”. If you don’t have news, don’t pretend. You’ll be found out and ruin future opportunities by crying “wolf”.
Inform your exhibit staff during pre-show orientation regarding which staff members will handle speaking with press or media contacts.

Direct Mail
Direct mail is only as good as the mailing list you use.
Concentrate on the quality of the names on the list, not the quantity. Include the pre-registered attendees and your current or past clients.
Be creative in what you send to prospects. Think outside the box for innovative tie-ins to your theme.
You can double the traffic to your exhibit with a hard-hitting direct mail piece that gives a compelling reason to visit.

Email and Fax
Instead of “snail mail”, send emails or faxes to invite prospects to your booth. The cost is minimal and appeals to many hi-tech show attendees. Link your email to your web site and always list your booth number.

Advertising
Where can you advertise before the show to catch the eye of your
“perfect prospect”? Web banners? Trade journals? Do you have a list of the events your company is participating in on your web site?

Internet
An ever-growing number of attendees are turning to the Internet to plan the exhibits they’ll visit at a trade show. Don’t miss opportunities to link to the show’s official web site.

Telemarketing
There’s nothing like a one-on-one invitation to your current customers, hot prospects, and even inactive customers to boost your booth traffic and potential sales. Offer them a “sneak preview” of your new product line or a special thank-you gift.

On-Site Promotion
Sensory overload is a common malady once you get to the show floor.
Many on-site promotions take place outside your exhibit, and can draw attendees to your exhibit with:

Door hangers or game pieces delivered to show attendees at the official hotels in the housing block, which give a compelling reason to visit your exhibit.
Advertising outside the convention center. What do you see between the time you leave your hotel room until you arrive on-site? Static billboards or mobile billboards on trucks circling the area, bus signage, bus stop posters, advertising on or in taxis, taxi receipts, hotel room keys, etc.
Can you park your company logo on a truck nearby?
Advertising inside the convention center, offered by show management, such as bellyband advertising on the show’s official directory, badge inserts, banners, signs, bags, etc.
Opportunities to sponsor meals, receptions, press rooms.
Private “second show” events for current or past customers and hot prospects, such as hospitality events, press receptions, seminars, or customer appreciation dinners
Speaking opportunities for your company’s executive staff to present at conference sessions, seminars, or meals.
Press kits in the press room or press conferences.

Inside your exhibit, try:

Promotional giveaways that tie into your theme, tag line, or product message; are of high perceived value; and will be kept by the attendee, preferably in their office to remind them of your company and product. “Trade” these giveaways for a completed lead form or for attending a comprehensive presentation or demo.
“Commotion” at your booth created by a celebrity, “infotainment”, interactive demonstrations, or participation in a contest with immediate results.
Partner program passports, where visiting a specified number of demonstrations in partnering exhibits earns a promotional gift.
Raffles for high-dollar items. If you can’t afford to give away a car, give away a lease on a luxury car, or a motorcycle or a vacation.
Special at-show product pricing

Post-Show Promotion

Just because the show is over doesn’t mean you have to stop promoting to the attendees and press. Keep the momentum going with:

Follow-up letters or emails to qualified attendees. Save your best 4-color printed collaterals for serious follow-up or place links in an email to your web site.
Case studies, white papers, articles, client recommendations, or references
Follow-up giveaway items that tie into your theme in trade for completing a post-show survey.
Phone calls to further qualify or set appointments for demonstrations or meetings.

Keep an eye out for my next article, as I will cover your secret weapon against your competition: a well-trained exhibit staff. Do you have a question or want me to go over a specific topic? Click here.

To stay updated on the latest tech, entrepreneurs and innovative companies in the cannabis industry, click here.

]]>https://www.directcannabisnetwork.com/advice-booth-mom-promotion-101/feed/060 Startup Terms Every Cannabis Entrepreneur Needs To Knowhttps://www.directcannabisnetwork.com/60-startup-terms-cannabis-entrepreneur/
https://www.directcannabisnetwork.com/60-startup-terms-cannabis-entrepreneur/#respondTue, 15 Jan 2019 22:38:45 +0000http://www.directcannabisnetwork.com/?p=18399The startup world operates on a lot of lingo. Many are left looking quite blank at a business article that reads with high-functioning jargon or during a conversation with experienced entrepreneurs. It tends to be less comprehensive if you don’t have a working textbook knowledge of these terms, and you’re just lucky if you can […]

Many are left looking quite blank at a business article that reads with high-functioning jargon or during a conversation with experienced entrepreneurs. It tends to be less comprehensive if you don’t have a working textbook knowledge of these terms, and you’re just lucky if you can make sense of it.

In our guide below, you will find 60 terms and phrases that qualify for startup-speak. This guide will give you a better context to understand the language of startups, venture capitalists, angel investors, and incubators.

Accelerator

Accelerators are organizations that offer a range of support services and funding opportunities for startups. They tend to work by enrolling startups in months-long programs that provide mentorship, office space and supply chain resources. More importantly, business accelerator programs offer access to capital and investment in return for startup equity. Startups essentially ‘graduate’ from their accelerator program after three or four months — which means that development projects are time-sensitive and very intensive.

Accredited Investor

A rich individual potentially interested in investing in your company. Or, more technically, according to the SEC: “A natural person with income exceeding $200,000 in each of the two most recent years or joint income with spouse exceeding $300,000 for those years and a reasonable expectation of the same income level in the current year; or A natural person who has individual net worth, or joint net worth with the person’s spouse, that exceeds $1 million at the time of the purchase, excluding the value of the primary residence of such person.” What this means for your start-up is you must require potential investors to prove that they can afford to risk their money in your start-up, in order to comply with the law.

Acquisition

When one company buys a controlling stake in another company. Can be friendly (agreed upon) or hostile (no agreement).

Advertorials / Advertainment

Paid content that is meant to look and feel like a real story or blog post. More people are fooled than you’d think – or as the “tainment” part implies, readers are interested enough that they don’t care that they are being pitched. As display ad pricing and effectiveness have decreased, more companies are turning to advertorials to capture ad revenue.

Agile

A philosophy of software development that promotes incremental development and emphasizes adaptability and collaboration.

Angel investor

Individual who provides a small amount of capital to a startup for a stake in the company. Typically precedes a Seed Round and usually happens when the startup is in its infancy.

B2B

Business to business. This describes a business that is targeting another business with its product or services. B2B technology is also sometimes referred to as enterprise technology. This is different from B2C which stands for business to consumer and involves selling products or services directly to individual customers.

B2C

Business to consumer (B2C) refers to the transactions conducted directly between a company and consumers who are the end-users of its products or services.

Benchmark

The process by which a startup company measures their current success. An investor measures a company’s growth by determining whether or not they have met certain benchmarks. For example, company A has met the benchmark of having X amount of recurring revenue after two years in the market.

Board of directors

A group of influential individuals, elected by stockholders, chosen to oversee the affairs of a company. A board typically includes investors and mentors. Not all startups have a board, but investors typically require a board seat in exchange for an investment in a company.

Bootstrapped

A company is bootstrapped when it is funded by an entrepreneur’s personal resources or the company’s own revenue. Evolved from the phrase “pulling oneself up by one’s bootstraps.”

Bridge loan

Also known as a swing loan. Short-term loan to bridge the gap between major financing.

Buyout

A common exit strategy. The purchase of a company’s shares that gives the purchaser controlling interest in the company.

Capital

Monetary assets currently available for use. Entrepreneurs raise capital to start a company and continue raising capital to grow the company.

Capital under management

The amount of capital, or financial assets, that a venture capital firm is currently managing and investing.

Capped notes

Refers to a “cap” placed on investor notes in a round of financing. Entrepreneurs and investors agree to place a cap on the valuation of the company where notes turn to equity. This means investors will own a certain percentage of a company relative to that cap when the company raises another round of funding. Uncapped rounds are generally more favorable to an entrepreneur/startup.

Cliff

Usually applies to vesting schedules (shares given to employees over time). Cliffs are a way for the CEO to fire employees or let them leave without giving them stock within a limited period of time (usually one year). Cliffs are also used on CEOs by investors to make sure the CEO sticks around after getting the cash.

Convertible debt

This is when a company borrows money with the intent that the debt accrued will later be converted to equity in the company at a later valuation. This allows companies to delay valuation while raising funding in its early stages. This is typically done in the early stages of a company’s life when a valuation is more difficult to complete and investing carries higher risk.

This is when a company raises money by selling bonds, bills, or notes to an investor with the promise that the debt will be repaid with interest. It is typically performed by late-stage companies.

Disruption

Also known as disruptive innovation. An innovation or technology is disruptive when it “disrupts” an existing market by doing things such as: challenging the prices in the market, displacing an old technology, or changing the market audience.

Due diligence

An analysis an investor makes of all the facts and figures of a potential investment. Can include an investigation of financial records and a measure of potential ROI.

Enterprise

The term enterprise typically refers to a company or business (i.e., an enterprise tech startup is a company that is building technology for businesses).

Entrepreneur

An individual who starts a business venture, assuming all potential risk and reward for his or herself.

Entrepreneur in residence (EIR)

A seasoned entrepreneur who is employed by a Venture Capital Firm to help the firm vet potential investments and mentor the firm’s portfolio companies.

The act of raising capital by selling off shares of a company. An IPO is technically a form of equity financing.

Exit

This is how startup founders get rich. It’s the method by which an investor and/or entrepreneur intends to “exit” their investment in a company. Commons options are an IPO or buyout from another company. Entrepreneurs and VCs often develop an “exit strategy” while the company is still growing.

Freemium

You give the basic product away for free and then try to upsell features to your customers. This marketing ploy is often used in directory businesses.

Fund of funds

A mutual fund that invests in other mutual funds.

Gamify

Adding a game layer to a website or product experience that encourages people to use it with rewards of various kinds. People love games.

Ground floor

A reference to the beginning of a venture, or the earliest point of a startup. Generally considered an advantage to invest at this level.

The shape of the growth curve VCs want to see and believe! This means your start-up will have to double sales every year.

Incubator

An organization that helps develop early-stage companies, usually in exchange for equity in the company. Companies in incubators get help for things like building their management teams, strategizing their growth, etc.

IPO

Initial public offering. The first time shares of stock in a company are offered on a securities exchange or to the general public. At this point, a private company turns into a public company (and is no longer a startup).

Lead investor

A venture capital firm or individual investor that organizes a specific round of funding for a company. The lead investor usually invests the most capital in that round. Also known as “leading the round.”

Leveraged buyout

When a company is purchased with a strategic combination of equity and borrowed money. The target company’s assets or revenue is used as “leverage” to pay back the borrowed capital.

Liquidation

The process of dissolving a company by selling off all of its assets (making them liquid).

Low Hanging Fruit

The easiest thing your company can do to bring cash in the door. Often hard to identify, but crucial for start-up success.

Mezzanine financing

A form of hybrid capital typically used to fund adolescent and mature cash flow positive companies. It is a form of debt financing, but it also includes embedded equity instruments or options. Companies at this level, which are no longer considered startups but have yet to go public, are typically referred to as “mezzanine level” companies.

Non-disclosure agreement. An agreement between two parties to protect sensitive or confidential information, such as trade secrets, from being shared with outside parties.

Pivot

The act of a startup quickly changing direction with its business strategy. For example, an enterprise server startup pivoting to become an enterprise cloud company.

Portfolio company

A company that a specific Venture Capital firm has invested in is considered a “portfolio company” of that firm.

Preferred stock

A stock that carries a fixed dividend that is to be paid out before dividends carried by common stock.

Proof of concept

A demonstration of the feasibility of a concept or idea that a startup is based on. Many VCs require proof of concept if you wish to pitch to them.

Pro rata rights

Also known as supra pro rata rights. Pro rata is from the Latin ‘in proportion.’ A VC with supra pro rata rights gives him or her the option of increasing his or her ownership of a company in subsequent rounds of funding.

Recapitalization

A corporate reorganization of a company’s capital structure, changing the mix of equity and debt. A company will usually recapitalize to prepare for an exit, lower taxes, or defend against a takeover.

ROI

This is the much-talked-about “return on investment.” It’s the money an investor gets back as a percentage of the money he or she has invested in a venture. For example, if a VC invests $2 million for a 20 percent share in a company and that company is bought out for $40 million, the VC’s return is $8 million.

Round

Startups raise capital from VC firms in individual rounds, depending on the stage of the company. The first round is usually a Seed round followed by Series A, B, and C rounds if necessary. In rare cases, rounds can go as far as Series F, as was the case with Box.net.

SaaS

Software as a service. A software product that is hosted remotely, usually over the internet (a.k.a. “in the cloud”).

Seed

The seed round is the first official round of financing for a startup. At this point, a company is usually raising funds for proof of concept and/or to build out a prototype and is referred to as a “seed stage” company.

Secondary public offering

When a company offers up new stock for sale to the public after an IPO. Often occurs when founders step down or desire to move into a lesser role within the company.

Sector

The market that a startup companies product or service fits into. Examples include consumer technology, cleantech, biotech, and enterprise technology. Venture Capitalists tend to have experience investing in specific related sectors and thus tend not to invest outside of their area of expertise.

Series

Refers to the specific round of financing a company is raising. For example, company X is raising their Series A round.

Stage

The stage of development a startup company is in. There is no explicit rule for what defines each stage of a company, but startups tend to be categorized as seed stage, early stage, mid-stage, and late stage. Most VCs firms only invest in companies in one or two stages. Some firms, however, manage multiple funds geared toward different stage companies.

Startup

A startup company is a company in the early stages of operations. Startups are usually seeking to solve a problem of fill a need, but there is no hard-and-fast rule for what makes a startup. A company is considered a startup until they stop referring to themselves as a startup.

Sweat Equity

Shares of your company given in exchange for work done. This is a good recruiting tool to help you attract passionate talent you can’t afford to pay at market rates.

Term sheet

A non-binding agreement that outlines the major aspects of an investment to be made in a company. A term sheet sets the groundwork for building out detailed legal documents.

Valuation

The process by which a company’s worth or value is determined. An analyst will look at capital structure, management team, and revenue or potential revenue, among other things.

Venture capital

Venture capitalist

An individual investor, working for a venture capital firm, that chooses to invest in specific companies. Venture capitalists typically have a focused market or sector that they know well and invest in.

Vesting

When an employee of a company gains rights to stock options and contributions provided by the employer. The rights typically gain value (vest) over time until they reach their full value after a pre-determined amount of time. For example, if an employee was offered 200 stock units over 10 years, 20 units would vest each year. This gives employees an incentive to perform well and stay with the company for a longer period of time.

To stay updated on the latest tech, entrepreneurs and innovative companies in the cannabis industry, click here.

]]>https://www.directcannabisnetwork.com/60-startup-terms-cannabis-entrepreneur/feed/0Entrepreneur of the Week: Laurel Friesen of Heylohttps://www.directcannabisnetwork.com/entrepreneur-week-laurel-friesen/
https://www.directcannabisnetwork.com/entrepreneur-week-laurel-friesen/#respondSat, 05 Jan 2019 09:06:56 +0000http://www.directcannabisnetwork.com/?p=18382Each week we highlight entrepreneurs in the cannabis industry for our viewers to learn more about the leading cannabis executives of our time. This week, we highlight Laurel Friesen of Heylo. Meet Laurel Friesen Laurel (Lo) Friesen is the founder, CEO and Chief Extractor of Heylo. Upon obtaining a degree in Environmental Chemistry from Northwestern […]

]]>Each week we highlight entrepreneurs in the cannabis industry for our viewers to learn more about the leading cannabis executives of our time. This week, we highlight Laurel Friesen of Heylo.

Meet Laurel Friesen

Laurel (Lo) Friesen is the founder, CEO and Chief Extractor of Heylo. Upon obtaining a degree in Environmental Chemistry from Northwestern University, Lo followed a passion for medicine to work in a renown gastroenterology lab in Chicago, IL. The experience inspired her to explore cannabis as medicine and to enter the emerging industry.

Lo joined Eden Labs, a leading CO2 extraction equipment manufacturer, to build a Research and Development department. Leading a team of 5 people she managed the development of Eden Labs’ newest system, the FX2 Supercritical CO2 Extractor.

After working with two other cannabis processors, Lo launched Heylo in 2017 with a mission to provide clean and great tasting oil with production transparency.

Lo and the Heylo team are committed to education and facilitate community engagement by hosting educational events, a concert series, public tours, American Chemical Society meetings, CANN-STEM events, and Heylo Sessions events. Her personal mission is to provide cannabis users with as much information as possible and to enable active and engaged lifestyles with cannabis.

In our interview with Laurel, we asked a variety of questions to learn more about Heylo, and what it takes to build a startup in the cannabis industry!

DCN: Laurel, congratulations on being featured as this week’s entrepreneur of the week and for all that you do! Can you please share with our readers your elevator pitch for Heylo?

Laurel Friesen: Heylo is a cannabis company built on education and transparency. We aspire to create full-spectrum extracts rich in terpenes with rare cannabinoids for wellness and recreation.

DCN: What ignited the spark in you to launch your business?

Laurel Friesen: My decision to enter cannabis and eventually start my own business was inspired in large part by my father. As a retired physician, he stayed current on medical literature and was quick to recognize the emerging science and business potential of cannabis as states began loosening their laws around 2012. We began having conversations around what it would like if I changed my career path from medical school to the cannabis industry around 2013/2014.

I was inspired to enter medicine out of a desire to serve a vulnerable population and help people. Over time, I realized I could have a similar impact on the wellbeing of others through cannabis.

DCN: When you finally decided that you wanted to launch a business in the cannabis industry, what was your experience like when telling your family and friends? Were they supportive?

Laurel Friesen: Although I took the plunge and started this business, I can’t stress enough the support I’ve received from my family and friends. My parents’ direct support and involvement accelerated my journey into cannabis and starting Heylo. I would not be where I am with this business without the two of them and look to them for advice and counsel almost daily.

My siblings have been supportive in so many ways throughout my journey. They have been quick to champion the company, offer advice, necessary distraction. We’re hoping to expand to other states as a family.

Although I had to learn the extraction ropes myself, my husband Daniel has helped me and continues to be a huge part of helping me grow Heylo. Daniel is a marketing guru and truly is my other half in this business. I am grateful every day to be able to work with my husband 24/7, my weaknesses are his strengths. This rollercoaster is far more possible, and fun, with Daniel by my side.

DCN: What is unique about your business?

Laurel Friesen: I am proud of so much from this past year, but two highlights stand out. First, the growth and success of our educational events and programming in and around Seattle. We started hosting events in our lab in 2017 and were thrilled by the reception and growth of these events throughout 2018. The community feels stronger than ever and we can’t wait to see what 2019 brings!

DCN: What are some challenges you faced early on and how’d you beat them?

Laurel Friesen: Early on it felt like we faced every challenge imaginable. Obtaining a license and getting our operation up-and-going was a tremendous hurdle in itself. We hit the shelves in Washington in March 2017 with a different brand name. In May 2017 we received a cease-and-desist for our mark, which we decided not to fight. This sent us back to the drawing board with our brand.

This legal challenge, which felt like a death blow, was a blessing in disguise. We were forced to rethink our DNA and what value we would bring to market in Washington. In the end, we re-launched as “Heylo” in August 2017. The reception of the new brand has been tremendous and I am proud of the way we recovered from this challenge through perseverance, creativity, and grit.

DCN: How did you come up with the name of your company?

Laurel Friesen: I was able to bootstrap Heylo without funding by relying on my own savings and avoiding capital investments in equipment. I rent a majority of the equipment I use, which was a creative way to avoid a significant initial investment on my part.

DCN: What did you give up to get where you are today?

Laurel Friesen: I sacrificed a tremendous amount of time and effort, as well as the comforts of a regular paycheck or the security of academia. For several stretches of time, I was working 12 to 14 hour days, 7 days a week. The only day in the past several years when I haven’t done any work was my wedding day this year.

DCN: What is the best piece of advice you can give to others looking to launch a company in the cannabis industry?

Laurel Friesen: Following the pack and wherever the money is today is a recipe for disaster. Think creatively about what value you can bring to the market, execute with as little outside investment as possible, and play on whatever strengths you have that are uniquely yours. Recognize your weaknesses and rely on your network to fill in these gaps.

DCN: What’s the hardest part of founding and running a startup?

Laurel Friesen: The uncertainty and unpredictability. It’s inherent to any startup.

DCN: Is there anything that surprised you about being an entrepreneur in the cannabis industry?

Laurel Friesen: I am excited that so many women have leading roles in this new industry, although I am surprised the trend has not continued. I hope to see a resurgence in female leaders in cannabis in the years to come.

DCN: How do you stay balanced?

Laurel Friesen: I love to play golf. It was a passion of mine instilled by my parents and something I enjoy doing with my husband on nice days in Seattle, although it has been hard the past several years to make time to hit the greens.

We enjoy yoga and make sure to stay physically active on most days of the week. We prioritize date nights and non-working evenings at home.

DCN: What book has inspired you the most?

Laurel Friesen: The E-Myth has been my book of choice for quite some time, I re-read it frequently to make sure I’m always thinking of ways to improve our operation and be a better leader for my team.

DCN: Excluding yours, what company or business do you admire the most?

Laurel Friesen: The list is endless. I find inspiration in local businesses in West Seattle where I live, as well as national companies that are putting a mission and the people behind the product first.

DCN: How can we as an industry continue to make a positive difference in society?

Laurel Friesen: Recognizing that this industry is a global movement is the first major step. This is a shift in perspective from most modern industries. We believe this plant has the capability to change the world and right many wrongs in our society. When we recognize the inherent values of the plant we can build products and organizations that reflect abundance, community, and wellness.

DCN: Thank you, Laurel, for sharing your story and offering such real and insightful advice to DCN readers!

For those looking to learn more about Heylo please check out, www.heylocannabis.com and on Instagram at @heylocannabis

Want to be featured? Click here to tell us why you should be an Entrepreneur of the week on DCN.

]]>https://www.directcannabisnetwork.com/entrepreneur-week-laurel-friesen/feed/0Emerald Cup Spotlight: Newell’s Botanicalshttps://www.directcannabisnetwork.com/emerald-cup-newells-botanicals/
https://www.directcannabisnetwork.com/emerald-cup-newells-botanicals/#respondFri, 04 Jan 2019 08:20:05 +0000http://www.directcannabisnetwork.com/?p=18368For 15 years the Emerald Cup has been showcasing Northern California’s premier cannabis destination while advancing the concept of sustainable, outdoor farming. Its reputation is firmly solidified as the largest, most respected, organic, outdoor, cannabis competition in the world. In this editorial series, DCN had the opportunity to speak with each of the first place winners […]

]]>For 15 years the Emerald Cup has been showcasing Northern California’s premier cannabis destination while advancing the concept of sustainable, outdoor farming. Its reputation is firmly solidified as the largest, most respected, organic, outdoor, cannabis competition in the world.

In this editorial series, DCN had the opportunity to speak with each of the first place winners to showcase who they are, their mission and what it takes to compete in one of the industries most respected cannabis events.

Meet Newell’s Botanicals

Newell’s Botanicals is a small company of social entrepreneurs with a mission to regenerate ecosystems and detox your cosmetics cabinet. Newell’s Botanicals initial focus was on making natural and organic skin, body, and hair care products and distributing them at local farmers markets in California. They were co-planting a lot of herbs and flowers alongside their medicinal cannabis for their beneficial synergistic effects on their cultivation. However, it turned out these same plants – calendula and chamomile in this case – are powerful medicinal herbs in their own right. Everything they had in their garden – THCA-rich cannabis, lemon trees, medicinal herbs – was precisely what was needed to help their own family members which in turn allowed them to see how they could help many others along the way.

The Interview

DCN: What is the mission statement behind Newell’s Botanicals?

Newell’s Botanicals: The mission of Newell’s Botanicals is to build and restore ecosystems by using the production of high-value botanicals as an economic driver for change, and make the best botanically-driven self-care products on the planet.

DCN: Newell’s Botanicals initially started as a small family business, and then Chelsea Dudgeon joined the team, did either of you envision seeing Newell’s Botanicals taking on the path it is on today?

Newell’s Botanicals: We can’t remember who said it, but another cup winner – a permaculture grower that raises animals and grows food alongside his cannabis – said, “we grow cannabis to support our farming habit”. All we ever wanted was to have our little homestead, raise our chickens, grow our cannabis, and use that as a base to prove methods of regenerative agriculture and spread that knowledge. So, needless to say, this unexpected foray into the realm of commercial cannabis goods was not part of the vision.

The original Newell’s Botanicals body care was always a small, homegrown project, and largely inactive at the point that Chelsea created and launched Deep Skin in the cannabis space. We brought the brand name back as a masthead to carry a spread of products. Once we were working in the cannabis/self-care space it became rapidly apparent that we could still accomplish our mission of spreading regenerative agriculture – perhaps even better now – because now when we ask a farmer to consider changing their methods we can also offer them a contract to buy some of the medicinal herbs that we’re asking them to grow, whether it’s cannabis or ginger. And in serving our interests of sourcing clean, quality, compliance-test-passing ingredients we help make that corner of the world just a little bit cleaner.

We are heading further down the business development path these days, using our position to champion a business model rooted in social and environmental responsibility and forming partnerships that make that possible. It’s scary and surprising to be a part of a massive industry suddenly, but the path to accomplishing our mission has never been more apparent.

DCN: Newell’s Botanicals placed first place in the topical competition. However this is not the first time, but the third time Newell’s Botanicals has taken the first place prize! How does it feel?

Chelsea: I would say that the progression of primary emotions, win by win, was this: Shock, Relief, Satisfaction. The first year that we won it was like, “Did someone make a mistake?” We entered the topical as a companion to a flower entry so that Newell and I could both get competitor’s passes. We weren’t expecting to place, let alone win. The second year, having come out of nowhere and inserted ourselves into this space, we had a lot to prove, so “winning” felt a lot more like “not losing”, which is great, too. But the third year… it’s a combination of the sense of accomplishment at still being here, in the game when so many others couldn’t be or chose not to be… and still managing to beat out the extremely well-capitalized top dogs in our category that had the money all along to survive the regulatory process, when we didn’t.

There’s also a lot of gratitude thrown in there, because without the Blake’s and the EC crew doing something different and good in this world we wouldn’t be where we are. I can think of so many tiny moments in the last two years where someone chose to do something for us out of kindness, and it made all the difference in our ability to still be here. So thank you to Ngaio Bealum for being a ride or die homie, always, TotaLeaf for offering us a home and a path forward, our distributor and sales team bSeen, and all our friends, family, advisors, and supporters. Newell’s Botanicals might have a team of 2, but we are very much a community supported project.

Newell: For me, this has been a journey of development and growth with my lovely partner Chelsea. Before she came into my life, I did not have the confidence in my ideas to enter the cannabis industry publicly. I have been advocating for cannabis medicine for some time without the support of a community. Being part of an active cannabis community with her has been the most significant win for me.

DCN: Let’s talk about this topical, what is your favorite thing about this topical? Who would you say could benefit from using this specific topical?

Chelsea: My favorite thing about Deep Skin is the response I get from people that use it. I’m fortunate not to have chronic pain, so I don’t experience the product the same way as someone who, say, hasn’t slept through the night in 10 years. Even we are surprised at how well it works. Instincts played a big role in formulating the first batch, but every time I revisit the ingredients and the research that has and is being done, I find some new reason why it’s helping so many people. I think the two most immediately apparent differences about Deep Skin compared to most other topicals is that this one is designed to absorb really, really fast, and to not smell like weed. It smells like ginger, lemon, and chamomile – really pleasant – and can be used anywhere with the highest discretion. It’s good for anyone with pain and skin conditions, but those who appreciate a refined user experience will be especially impressed.

Newell: I have spinal constriction and bone spurs on two neck vertebrae, I am a user of the product. My favorite feature is how fast it works for me. Also finding out how well it works for our clients when they come to dispensary demos.

DCN: What other products do you carry?

We are in the process of relaunching the rest of our historic cannabis line, which includes targeted efficacy salves for joints, muscles, and skin, a very refined massage oil, and a deodorant that supports breast health. On our website, we also offer non-cannabis personal care products made in small batches, seasonally, from the herbs in our garden.

DCN: Over the past few years, your company like many others in the cannabis industry have faced many changes, what has it been like building a compliant company?

Chelsea: Nightmarish. Like a hellscape. And all my friends are dead. Obviously, that’s hyperbole, but if I could do it all again differently, I would. I would focus more on building my business, helping my friends build theirs, and less on trying to help the state do its job. If the regulatory process were a product on Amazon, I’d rate it zero stars and send it back as defective.

Newell: I agree with Chelsea. I wish we had worked on collaboration earlier. We all segregated into our little silos and did not seek partners. We need to get our act together and provide assistance to the rest of the legacy cannabis community.

DCN: Newell’s Botanicals takes pride in developing products that are certified organic, sustainably produced, and locally sourced, can you share more on why this is so important?

Newell’s Botanicals: USDA organic is a baseline standard for proving that, hopefully, you didn’t do any hanky suspect nonsense in the cultivation process. However, because we find that is often not true, we are always pursuing higher standards, even if those standards lead us away from the certified organic label at times. We are far more concerned with the environmental and social responsibility aspects of discerning sourcing than we are with arbitrary labels. Our mission is to build and restore ecosystems, so in no universe are we happy with any system that compromises ecosystems in order to provide a product, and conventional agriculture is one of the most egregious violators in this regard.

DCN: What do Newell’s Botanicals have in store for 2019?

Newell’s Botanicals: We are forming strategic alliances with our fellow “legacy” brands and operators so that we can maintain the systems and strategies that have made us the top creators and producers in the greatest cannabis market on earth. We need each other now more than ever.

DCN: DCN is a business to business digital news network, giving a voice to cannabis startups, and sharing the stories of entrepreneurs in this industry if there were one piece of advice you would like to share with the new entrepreneurs who are coming into this industry, what would you say?

Chelsea: When someone asks me how to best break into the cannabis industry, my go-to response is “Don’t.” Not because it’s definitely a mistake, but because if all it takes is me telling you no to talk you out of it, you definitely don’t have what it takes to handle being in this business – where the existential crises come with the morning news, you don’t know who to trust, you’re still worried about breaking federal law and going to prison, and we still don’t have banking. My point is, “hard” is where we live now. If you like hard, have at it. And if you’re new to the cannabis scene, try to learn the history, so you don’t stick your foot in your mouth. The opportunity still exists, it just requires you to be really tough and resilient, mentally and emotionally.

Newell: If they asked me I would ask, “Do you love cannabis?” If they can answer yes, I would recommend learning the business side of things so they can choose a suitable business development team to navigate all the stuff cannabis folks are not good at.

DCN: Thank you for taking the time to share more about Newell’s Botanicals. Congratulations again!

]]>https://www.directcannabisnetwork.com/emerald-cup-newells-botanicals/feed/016 of the Best Podcasts for Cannabis Entrepreneurs in 2019https://www.directcannabisnetwork.com/podcasts-cannabis-entrepreneurs-2019/
https://www.directcannabisnetwork.com/podcasts-cannabis-entrepreneurs-2019/#respondThu, 03 Jan 2019 18:52:13 +0000http://www.directcannabisnetwork.com/?p=18354Entrepreneurs and business leaders have turned to podcasts as a great source of inspiration and education. But with more business podcasts launching into the iTunes store to meet the growing demand, it’s getting harder and harder to find the best podcasts for entrepreneurs. This list of the best podcasts for entrepreneurs is full of people […]

]]>Entrepreneurs and business leaders have turned to podcasts as a great source of inspiration and education. But with more business podcasts launching into the iTunes store to meet the growing demand, it’s getting harder and harder to find the best podcasts for entrepreneurs.

This list of the best podcasts for entrepreneurs is full of people who have walked through the early days of starting up, made it through to the other side, and are willing to guide the rest of us to the promised land.

So pull out your iPhone, open your podcast app of choice, and get ready to tap “Subscribe” 16 times…

About Podcast: In over 1,000 interviews, Andrew Warner asks uncomfortable questions to dig deep into the success and failures of the most successful business founders and thought leaders. The ideas and stories are so powerful that hearing them will change you. If you are an ambitious entrepreneur crafting your next upstart or startup, there are no greater “street smarts” education than Mixergy.

About Podcast: The Periodic Effects Podcast focuses on the Business and Science of Cannabis. This podcast takes a deeper look at the stories behind cannabis business owners, founders, and executives. We discuss how they entered the industry, past experience, their value proposition and insights on how they see the industry evolving.

About Podcast: The Twenty Minute VC is a twice-weekly business podcast where Harry interviews today’s most successful and inspiring venture capitalists, delving inside the funding game all in an easily digestible twenty minutes.

About Podcast: MJBulls podcast features MJ entrepreneur’s pitching their company’s investment offering to MJ investors to raise capital to grow their businesses and investors who are funding MJ companies.

About Podcast: With the birth of any new industry comes great opportunity, great risk, and undoubtedly some pretty incredible stories. The Budding Industry podcast was born out of a desire to tell these stories of Cannabis Capitalists, industry pioneers, and founders blazing their own path.

About Podcast: Are you struggling to stand out in a crowded marketplace, get more clients, and turning a prospect into a customer – a customer who pays you what you’re worth? Building the business of your dreams, doing what you love does NOT have to be hard, frustrating and exhausting IF you know the RIGHT steps!

Annemarie and her guests will show you how to navigate and stand out in a rapidly changing and competitive marketplace so YOU become THE influential voice in your field.

About Podcast: EstroHaze is a media company and community which highlights the business and lifestyles of multicultural women in cannabis. The podcast provides edutainment featuring the NEW face of cannabis: ambitious, free, and focused!

About Podcast: Each week, experienced entrepreneurs and innovators come to Stanford University to candidly share lessons they’ve learned while developing, launching and scaling disruptive ideas. The Entrepreneurial Thought Leaders Series is produced by Stanford eCorner during fall, winter and spring quarters. ETL is supported by the venture capital firm DFJ.

About Podcast: If you’re looking for inspiring (and enlightening) founder stories, you need to check out How I Built This. In their own words, it’s a show about “innovators, entrepreneurs, idealists and the stories behind the movements they built.”

About Podcast: Matthew Kind from the website CannaInsider provides weekly interviews with the leading voices of the rapidly growing Cannabis, Marijuana Industry. Listen in and learn as visionaries discuss the trends and technology that are shaping the industry. Each week you’ll learn about; what is going on in The Marijuana Industry, what states are legalizing and when, what jobs are being created by both recreational and Medical Marijuana (MMJ) legalization, ways to invest in cannabis businesses, and fun and safe ways to partake in Marijuana Tourism.

About Podcast: Essential listening for entrepreneurs, product managers and anyone working in tech today. They break down the concepts you need to know, from Product Management to Growth, Sales to Funding, each episode they will bring you stories that will inspire and insights that will change the way you think about product and business.

About Podcast: Startup Stoners is comprised of Cody Chase & Brettski. Two twenty-something cannabis entrepreneurs with big dreams, bigger ideas, and even bigger personalities. Listening to Startup Stoners will have you find inspiration, learn insights about the cannabis industry, hear behind-the-scenes details about what it’s like to start your own business, talks about cannabis, and of course, a bunch of interesting bullsh*t.

]]>On December 20, 2018, President Donald Trump signed the Agriculture Improvement Act of 2018(“Farm Bill”), which decriminalizes hemp and products derived from hemp under federal law.

The Farm Bill defines “hemp” as follows:

HEMP.—The term ‘hemp’ means the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a delta-9 tetrahydrocannabinol concentration of not more than 0.3 percent on a dry weight basis.

(a) Rule Of Construction.—Nothing in this title or an amendment made by this title prohibits the interstate commerce of hemp (as defined in section 297A of the Agricultural Marketing Act of 1946 (as added by section 10113)) or hemp products.

(b) Transportation Of Hemp And Hemp Products.—No State or Indian Tribe shall prohibit the transportation or shipment of hemp or hemp products produced in accordance with subtitle G of the Agricultural Marketing Act of 1946 (as added by section 10113) through the State or the territory of the Indian Tribe, as applicable.

The Department of Agriculture’s Role

The Farm Bill gives primary authority over hemp production to the U.S. Department of Agriculture (USDA). A state or Native American tribe interested in hemp production must submit a plan in conformance with the listed requirements to the Secretary of the USDA, and the Secretary is given 60 days to decide on whether to approve or deny the proposed plan. The USDA has the ability to audit state and Native American tribal hemp production plans for compliance. Additionally, the USDA is given authority to create a hemp production plan and to issue licenses for states or tribes that do not have a USDA-approved plan.

The FDA’s Role

The Farm Bill does not modify the United States Food and Drug Administration’s (FDA) authority to issue regulations related to hemp production. Specifically, Section 10113 of the Act says:

Nothing in this subtitle [relating to hemp production] shall affect or modify the authority of the Commissioner of Food and Drugs and the Secretary of Health and Human Services under the Federal Food, Drug, and Cosmetic Act (21 U.S.C. 301 et seq.); or section 351 of the Public Health Service Act (42 U.S.C. 262); to promulgate Federal regulations and guidelines that relate to the production of hemp under the Act described in subparagraph (A)(i) or the section described in subparagraph (A)(ii).

In response to passage and signage of the 2018 Farm Bill, the FDA issued a statement regarding the agency’s regulation of products containing cannabis and cannabis-derived compounds which discusses this. In the statement, the FDA said that they are “committed to pursuing an efficient regulatory framework for allowing product developers that meet the requirements under our authorities to lawfully market these types of products.”

As was the case before, the FDA is primarily concerned with adulterated and misbranded products, as well as unsubstantiated health-related statements and deceptive marketing. Neither THC nor CBD are currently approved by the FDA as an additive or a dietary supplement, though the FDA acknowledges in its new statement that this may be reevaluated in light of the descheduling of hemp. A number of cannabis companies marketing products allegedly containing CBD have received warning letters from the FDA over the past few years. The FDA also has a webpage containing FAQs relating to the agency’s regulation of cannabis and products containing cannabis-derived compounds.

Also on December 20, the FDA announced that it has completed its review of three hemp-derived food products and determined that they are Generally Recognized as Safe (GRAS): hulled hemp seeds, hemp seed protein, and hemp seed oil. Thus, those products can be legally marketed as human food without receiving food additive approval.

What does this mean for CBD?

The Farm Bill did not “legalize” CBD (or THC, for that matter). Rather, it legalized items encompassed by the new definition of “hemp” as well as any compounds derived from hemp. This could include CBD, THC, or other cannabinoids or terpenes, as long as the overall THC concentration of the compound is less than 0.3%, and the compound was extracted in an approved manner by a licensed hemp grower.

As noted above, the FDA issued a statement in response to the signage of the Farm Bill that discussed how neither THC nor CBD are approved by the FDA as food additives or dietary supplements, so it is unlawful to market them as such in interstate commerce.

The California Department of Public Health has not yet issued a statement in response to the 2018 Farm Bill, though it is expected that they will since they previously issued a statement regarding industrial hemp and CBD in which they mentioned the 2014 version of the bill.

Other Implications

By removing “hemp” from the Controlled Substances Act, individuals and businesses engaging in hemp-related commerce would longer be subject to Section 280E of the Internal Revenue Code (“IRC §280E”). IRC §280E says, in a nutshell, that businesses engaged in trafficking of illegal drugs cannot take standard business deductions on their annual income taxes. This has resulted in cannabis companies having, on average, a greater tax burden than other businesses. With the passage of the farm bill, companies who engage in legal hemp activities will be able to take standard business deductions like other businesses, as long as they are not also engaging in cannabis commerce, which is still subject to IRC §280E.

Banking access should theoretically be easier to access for hemp producers than for cannabis producers once hemp is no longer illegal. While banks are not prohibited from working with cannabis clients, it entails extra cost and due diligence on their end, so the majority of banking institutions (at least FDIC-insured ones) have chosen not to accept cannabis accounts.

Additionally, federal grant opportunities and crop insurance (via the Federal Crop Insurance Act) should be available for hemp farmers as a result of the 2018 Farm Bill.

Intellectual Property Implications

Finally, with lawful interstate commerce, we anticipate that the United States Patent and Trademark Office (USPTO) will issue registrations for federal trademarks for hemp and products derived from hemp. Accordingly, expect to see an avalanche of federal Intent-to-Use applications as hemp companies seek to reserve potential brand names with the USPTO.

The federal judiciary will soon have occasion to recognize intellectual property rights for hemp and hemp products. For example, now that hemp is federally legal, hemp cultivators, manufacturers, and producers who register their federal trademarks can go to federal court to prevent others from using confusingly similar marks anywhere in the United States.

Similarly, hemp businesses that are farsighted enough to implement a trade secrets protection plan will be able to avail themselves of The Defend Trade Secrets Act of 2016, a federal law that allows an owner of a trade secret to sue in federal court when its trade secrets have been misappropriated. Because of the incredibly broad reach of The Defend Trade Secrets Act, it has been called “the single most important intellectual property development” in years, and should not be overlooked by hemp businesses. (See, Eric Goldman, Forbes, April 28, 2016, “The New ‘Defend Trade Secrets Act” is the Biggest IP Development in Years.”)

Stay tuned for more updates regarding the Farm Bill and the hemp industry.

The above information is provided as a public service. It is not intended as legal advice. Written by Lauren Mendelsohn of Law Offices of Omar Figueroa.

For answers to your legal questions or legal assistance, including with establishing and implementing a trade secrets protection plan, please contact the Law Offices of Omar Figueroa at (707) 829-0215 to schedule a confidential legal consultation.

]]>https://www.directcannabisnetwork.com/legal-joint-farm-bill-hemp/feed/0Expert Cannabis Entrepreneurs Advice For New Entrepreneurshttps://www.directcannabisnetwork.com/advice-new-entrepreneurs/
https://www.directcannabisnetwork.com/advice-new-entrepreneurs/#respondThu, 27 Dec 2018 01:09:43 +0000http://www.directcannabisnetwork.com/?p=18275Starting something new (especially a business!) can be overwhelming, intimidating and downright scary. And every business will face some unique challenges as it grows. But there are certain roadblocks in startup life that are common among entrepreneurs. So it helps to get advice from those who have been in your shoes. DCN decided to reach […]

Be ready to pivot…fast. Know that the industry has so many variables and ups and downs so you need to be nimble to be successful. Know that the model you started with may not be the one you ultimately end up with. We see the cannabis industry like we see the plant: constantly evolving and rapidly growing. And PLEASE get into the business for the right reasons. This is a magical plant that helps millions of people struggling with health issues. It’s not about making a fast buck.

This industry, although growing substantially, is still the road less traveled. You will hit roadblocks just because you are a part of it, but you will also find people who are even more supportive in spite of that. This is a community to be proud to be a part of because anyone in it knows that it’s not always easy. Ignore the judgment and continue to blaze your own trail along with some other badass trailblazers.

If you are coming into the industry learn about the culture and the plant. Find ways to integrate the decades of experience the cannabis communities have into your business. You will build better business relationships, brands, and products no matter what you are creating.

“If you are going to work with others, GET EVERYTHING IN WRITING, no matter how well you know someone or how much you respect them. A contract not only protects you, but it makes you look like you know what you’re doing. ”

You have to ask yourself, why are you doing this? are you in this only for the money? or do you want to make a difference? Your answer should be both; this is a business, but you have to be responsible for the products that you sell and the message that follows. Respect your competitors and listen to your consumers.

Treat people like you want to be treated. Everyone we come in contact with; we treat them with kindness and respect. This will go a long way as you build a business and establish relationships with peers and your client base.

Stay focused on execution. It is easy to get distracted by all of the noise in the industry. IPOs, acquisitions, partnerships, media coverage etc. None of that matters if you are not able to deliver on your promises to your customers and your employees consistently.

Be ready to do some serious homework. You can’t just throw money at consultants and expect them to do all of the work for you! Listen more than you speak and BE KIND to one another. Entrepreneurs are all around you: use that and find innovative ways to collaborate!

“Be accountable and hold others accountable for there actions.
Never give up even when it looks like the ship is sinking keep your head in the game.
Take most everything with a grain of salt. Things will be rocky before smooth sailing.”

This is an industry built on the foundation of one goal: making people feel good, however, those people define “good” for themselves. There are a lot of really good, kind and ethical people working in this industry — far more so than the charlatans and scammers. But at the same time, it’s a very challenging industry to break into. There are few (if any) get-rich-quick schemes in cannabis. You have to be prepared to endure financial sacrifices for an extended period of time in order to make a name for yourself and achieve a measure of success. But once you do, the rewards are worth it. I mean, when all is said and done, you’ll be making people feel good!

The farm act passed the Senate today. Selling weed, owning a cannabis brand or owning a dispensary is just the scratching the surface of what cannabis/hemp can be. Cannabis/Hemp has started a 2nd industrial revolution. It will disrupt healthcare, fuel, food, construction, clothing, media, alcohol, big pharma, politics, energy, the environment and more. Create new and fresh business ideas. Don’t do what already been done. The opportunity lies in creating something new and different.

As much as you can pull from other industries cannabis is unique in the sense that it was built from a community up. This is not a corporate industry, it could stand to be professionalized a bit, but it is unique none the less. Healing, community, education, and advocacy are what got us here and it is more than just a plant.

I want to be completely honest with anyone looking to get into cannabis because I was unprepared for how hard it was going to be when I first started. It seems that just about every institution; banks, insurance companies, even social media give canna-businesses a hard time. You pay higher rates for everything, you jump through so many hoops, and still run the risk of getting accounts shut down because “someone” in one of those companies decides they don’t like cannabis, and they want to take it out on your business that day. Don’t be surprised if you find yourself envious of all these happy people on Etsy, or Shopify who can just set up shop and start selling whatever items they have without a problem.

I don’t say any of that to discourage new entrepreneurs (if I can do it, so can you!), but I want you to be prepared for any outcome. Have backup plans for your backup plans. Despite the struggles, being in cannabis has been one of the most rewarding experiences of my life. Not only has it helped me personally, I see the immeasurable difference it can make for people who have access to it. The more businesses there are, the more the plant becomes normalized and accepted for its incredible healing properties.

1) Pass to the left 2) Don’t be the catchall consultant that positions yourself as an expert until you’ve built your proof of concepts. The industry is very much community driven and actions completed projects, and closed business speak more than outside-cannabis experience, regardless of the industry or scale.

Yes, cannabis equals money. A lot of money that you will spend before you make any. It takes time to build anything and this new industry has regulations that change with the wind. Enter the industry because you think your values will contribute to the integrity, success, and prestige of this new world.

“Have thick skin, good instincts and be mentally stable…this isn’t just a career, it’s a culture…a way of life! Every day we are given opportunities. Know your animal and plant i.d…..the difference between a shark, a whale, hemp and t.h.c…are miles apart.
Again…don’t be afraid to reinvent yourself….be determined.”

I’ve found that like many things in life, just showing up is 80% of the game. The cannabis industry has so many terrific networking events, conferences, panels, and meetups. Almost universally, the people at these events are eager to offer insights and make connections. It’s an exciting time to be in cannabis, but I get the sense we are nearing the end of this “rising tide lifts all boats” mentality. As new people and money continue to flood the industry, people will become increasingly guarded and more likely to view others as competitors, rather than partners. But, showing up with a give-first mentality is sure to make the right impression and will serve you well.

It is definitely NOT too late to get in the industry. But before you jump in feet first, make sure you clearly understand (and validate!) the value you’re adding with your skill set. If you’re not crystal clear on your value, it’ll be very hard to communicate that to others.

“The one piece of advice I’d give a new cannabis entrepreneur would be to set up your business with a mind to fluidity. This industry is unique – it’s high-speed, with ever-changing market conditions and constant roadblocks. The words “traditional business” can’t be found in the cannabis entrepreneur’s vocabulary. The mission and goals you begin with will change drastically from year to year.”

The ups and downs are totally normal. Remember to do this journey of yours for you and not for the money but to grow as a decent human being. You can give back to the community by just being your true self. Do not do it to be popular or accepted or to fit in. Keep your eye on the prize and do not let anyone keep you from reaching your dreams. Protect your dreams because some people will want to take them from you. Work hard and stay humble – remember where you came from and use it as a benchmark when you get to the place you are trying to get to. Lastly, every day is a new beginning and failure is the only way to success.

Create your own momentum and be authentic. Everyone creates their own reality. Entrepreneurship for me is a constant gut check. People build up paralyzing excuses without realizing it. Anyone can be successful if they stay in the “yes” mind frame.

The one thing I feel the most strongly about becoming a cannabis entrepreneur is to run your business with corporate social responsibility. This will undoubtedly be one of the largest industries in the world and we are at the forefront. Let’s make sure that we are creating business for the right reason (to help others, to help our planet, increase community interactions, etc.). As a person & business, if you do things with a good moral purpose, you will feel more accomplished and others will want to work & grow with you for that.

This is one of the most difficult businesses I have ever been involved with, but also one that I get the most personal satisfaction out of. Don’t cut corners, don’t ignore the rules and regulations… you can be a boy scout (or girl scout) and still run a very successful business. The cannabis community is tight-knit and built on collaboration – you’ll do better lifting others up then tearing others down. Most importantly, remember to have fun!!

I got to where I am today by surrounding myself with incredible people; my advisors, my team, my investors. The more you invest in others, the more you learn. Surrounding yourself with people of all backgrounds will help you grow as a person. I owe my current stance to all those I have learned from over the years.

“This industry is moving with incredible ferocity. People are constantly innovating and pushing for change. Throughout all of the haste, never stop expanding your knowledge base. Keep reading, and more importantly, stay humble.”

“When it comes to marketing, it’s easy to build your strategy on the same activities as other businesses in your space. It might seem like a great idea to go to the same events, use the same social strategies, and/or try the same advertising outlets, but you’ll never be noticed if you don’t stand out!

In the first few years, make sure to reevaluate every decision you make for marketing. Don’t be afraid to cut out activities that aren’t making you money or supporting your brand vision – there’s no shortage of marketing opportunities out there!”

People who are new to the industry and even the old timers need to get out and interact with the cannabis community. If you are in legal and compliance, get out to some of the fun events and see what your work is allowing to grow. If you are in events and PR, go to a few of the compliance seminars and learn what challenges are faced by your event sponsors. We should use our unique opportunity and position in a new and growing industry to form lasting bonds that can be both personal and professional. Get out there and crush your goals in the new year.

I would remind new entrepreneurs in the industry to stay focused. There are so many opportunities in the cannabis industry right now and it’s easy to open all doors and get pulled into a million directions. The more focused you are on the course you set out to achieve, the more successful you will be. Also, pay attention to compliance regulations because they are always changing in this space. You either need to have enough money and manpower to change regulations or have enough discipline to follow a strict regime of self-auditing your business to stay ahead of compliance rules.

Go out and find the companies you are passionate about and ask to work for them. Tell them how much you love the company and why. Companies are always looking for people who are passionate about their mission. Align with that and you will be on your way!

To stay updated on the latest tech, entrepreneurs and innovative companies in the cannabis industry, click here.